Question Details

I have buyers who made an offer on a property and we have come to terms on everything except one thing. The

Seller is requesting a 24 hour kick out clause. If he receives a better offer than he will give my buyers a 24 hour period to meet or beat the other offer. My Buyers have nothing to sell. Do you think the kick out is being used correctly? Because I see nothing but problems for my Buyers and an escape route for the Seller. My Buyers want the house, any suggestions?

I have to ask if your buyer is a cash buyer? I have seen a number of contracts fall through in recent months because of the difficulty of getting financing. This could be what the seller is fearful of.

I would suggest that you respond to the request of a kick out clause (we call it a right of refusal here in Arkansas) with a suggestion that the clause be removed upon loan approval of the buyer. That way, everyone is satisfied. The seller will know that they do in fact have a solid buyer and the buyer will certainly be able to understand that with the amount of loans being denied in todays market that it is not unreasonable for a seller to be wary.

Sometimes we have to put ourselve in the sellers shoes.
Let me know if this helps.
Candy

WOW then I would recommend all other comments pay for all services, however impedes your buyers options I most likely tell my buyers to move on what are they going to do if comes days away from close better offer is there... leaves your buyer on "street corner " no place move to !

Right. A kick-out clause should only be inserted if the buyers have a contingency that they would have to waive should a better offer comes in. The seller has every right to "sit" on the offer for 24 hours to see if another offer comes in, but I don't think it can be added to the contract.